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© 2015 ROBINS KAPLAN LLP Keeping Secrets In The Cloud Investigating and Confronting the Threat AIPLA 2015 Spring Meeting - Seth A. Northrop

Keeping Secrets in the Cloud

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© 2015 ROBINS KAPLAN LLP

Keeping

Secrets In The

Cloud

Investigating and Confronting the ThreatAIPLA 2015 Spring Meeting - Seth A. Northrop

© 2015 ROBINS KAPLAN LLP 2

So, What’s The

CLOUD?

© 2015 ROBINS KAPLAN LLP 31

Centralized sharing of computing resources across a network

© 2015 ROBINS KAPLAN LLP 42 Either “public” or

“private”

(Not my house!)

© 2015 ROBINS KAPLAN LLP 52 Either “public” or

“private”

(Much more accurate for Silicon Valley)

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IaaS

3 Different services provided

PaaS

SaaS

© 2015 ROBINS KAPLAN LLP 7

Why Business IsLOOKING TO THE CLOUD

© 2015 ROBINS KAPLAN LLP 8

1This stuff is hard to manage

(This was me!)

© 2015 ROBINS KAPLAN LLP 9

2It provides business with more flexibility

(Definitely not me!)

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3It saves money

11© 2015 ROBINS KAPLAN LLP

SIMPLE TRUTHFOR INSIDE COUNSEL:

The Cloud Is Here To Stay.

NOW WHAT?

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What areTRADE SECRETS?

© 2015 ROBINS KAPLAN LLP 131 The information needs to

be secret (shocker!)

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It derives “independent economic value” from being secret

© 2015 ROBINS KAPLAN LLP 153 There are reasonable

efforts to keep it secret

Unif. Trade Secrets Act § 1.4

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Provides a right to limit the dissemination of the information

Altavion, Inc. v. Konica Minolta Sys. Lab. Inc., 226 Cal.App.4th 26 (Cal. App., 2014)

17© 2015 ROBINS KAPLAN LLP

Anyone else see the concerns related to storing secrets on third-party shared systems?

(Storm metaphor was inevitable)

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It Feels A Bit LikeBEING LOST IN

THE FOG

© 2015 ROBINS KAPLAN LLP 19

How toWEATHER THE

STORM

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It Begins And Ends With Reasonableness

(Not every stock photo can be unlame)

Taco Cabana Intern., Inc. v. Two Pesos, Inc., 932 F.2d 1113, 1124 (5th Cir.1991)

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Pay Attention To The Terms of Service

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1Nobody looks this good negotiating a contract

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2Most lack the buying clout to negotiate cloud Terms of Service

(Even if you look like these two!)

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3Own your data

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3Own your data

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4Control who views your data

(He’s watching you now)

Lincoln Park Sav. Bank v. Binetti, 2011 U.S. Dist. LEXIS 7320 (N.D. Ill. Jan. 26, 2011)

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4Control who views your data

© 2015 ROBINS KAPLAN LLP 28

4Control who views your data

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5Look for assurances to keep data confidential and secure

Von Holdt v. A-1 Tool Corp., 2013 U.S. Dist. LEXIS 636 at *9-16 (N.D. Ill., Jan. 3, 2013)

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5Look for assurances to keep data confidential and secure

© 2015 ROBINS KAPLAN LLP 31

5Look for assurances to keep data confidential and secure

© 2015 ROBINS KAPLAN LLP 32

6Watch for provisions that allow data to be moved

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6Watch for provisions that allow data to be moved

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6Watch for provisions that allow data to be moved

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Encrypt Your Data

(And beware of hackers wearing hoodies)

© 2015 ROBINS KAPLAN LLP 36

Silo Your Data

Lockheed Martin Corp. v. L-3 Commc’ns Corp., 2008 U.S. Dist. LEXIS 109615 (N.D. Ga. Sept. 30, 2008)

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Shore Up Internal Data Storage Policies

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Monitor Data Transfers To The Cloud

© 2015 ROBINS KAPLAN LLP 39

Train Your Employees

(Not that kind of training!)

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Train Your Employees

(How many of you are sleeping like this guy?)

© 2015 ROBINS KAPLAN LLP 41

Form A Quick Response Team

(Maybe without guns?)Lockheed Martin Corp. v. L-3 Commc’ns Corp., 2008 U.S. Dist. LEXIS 109615 (N.D. Ga. Sept. 30, 2008)

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Form A Quick Response Team

(Better?)

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… and Include Outside Counsel

(Too gratuitous?)In re Woolworth Corp. Sec. Class Action Litig., 1996 U.S. Dist. LEXIS 7773, at *5–8 (S.D.N.Y. June 6, 1996)

© 2015 ROBINS KAPLAN LLP 44

Seth A. Northrop

Silicon [email protected]